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04/25/2024 |

Seamlessly Integrate Breadth Data with Market Breadth Symbols

It is an easy crutch to want to utilize index ETFs as gauges for overall market strength or weakness. If the QQQ, the SPY, and the IWM are all up, then the market is strong, right? Unfortunately, this is not always the case. Underneath the surface of index performance lie hundreds of individual constituents with unique weightings that are responsible for that performance. It’s a market of stocks, after all, and being able to visualize constituent performance easily is key. With that in mind, we’re pleased to introduce Market Breadth Symbols to make your under-the-hood analysis a breeze.

Market Breadth data has long been a crucial tool for savvy traders and investors, and while it has been available in TrendSpider for some time, visualizing and harnessing it just got a huge upgrade. All 1200 breadth series we offer are now available as symbols, allowing you to seamlessly integrate market breadth data into more of your existing workflows.

Unlocking Potential with Market Breadth Symbols

To view a market breadth symbol on your chart, you must first understand how one is built. Each symbol contains two components, the breadth series and the index, sector, or industry you’d like to view the breadth series on.

To begin searching for and utilizing these new symbols, knowing how to define each component is imperative. Here are some examples of breadth series and their corresponding symbol;

  • $AD: A/D Ratio
  • $MA50: # of symbols > 50 SMA
  • $MA200: # of symbols > 200 SMA
  • $H14: # of symbols new 14-day high
  • $H21: # of symbols new 21-day high
  • $H63: # of symbols new 63-day high
  • $L14: # of symbols new 14-day low
  • $L21: # of symbols new 21-day low
  • $L63: # of symbols new 63-day low
  • $HL52: Difference between 52-wk high/low

With the breadth series defined, you can then add the index, sector, or industry you’d like to see the breadth series for. We offer breadth data for 22 indexes and 120 sectors and industries within the US. Below, you’ll see a list of symbols that represent some of the indexes, sectors, and industries that are available. A full list of available Market Breadth Symbols can be found in our Developer Documentation.

  • SP100: S&P 100 Index
  • SP500: S&P 500 Index
  • N100: Nasdaq 100 Index
  • ENE: Energy Sector
  • AO: Amex Oil Index
  • R2000: Russell 2000 Index
  • SD: Soft Drinks
  • ALU: Aluminum

Now that you’ve got the individual pieces, simply combine them to suit your preferences and needs.

For example, if you’d like to see a chart of the percentage of symbols in the Nasdaq 100 that are currently above their 50-day SMA, use the $MA50N100 ticker. A y-axis value of (0.25) on the below chart tells us that 25% of the names in the Nasdaq 100 are above their 50-day SMA, a far cry from the December highs of 94%.

Using $H63ENE, we can see that after a strong rally to a multi-month high of 40%, energy has been getting sold heavily and now just 4% of energy names are making new 63-day highs.

You can take breadth analysis to another level by utilizing indicators on your market breadth symbols. In the example below, we see a multi-chart view with the IWM ETF price chart on top and the $LR142000 breadth chart underneath it. The breadth chart represents the percentage of names in the Russell 2000 making new 14-day lows.

Note the relationship between the breadth chart crossing above and below its 50-day SMA and the IWM price chart. When breadth crosses below its 50-day SMA (fewer names than average making 14-day lows), it appears to be a clear risk-on signal for the IWM. When it crosses back above the 50-day SMA (more names than average making 14-day lows), the inverse is true.

This chart shows the relationship of the 14 day lows chart and the IWM ETF price chart.

Putting Your Breadth Symbols To Use

Visualizing breadth data on the chart is an important piece of the puzzle, but market breadth symbols are not limited to just on-chart visual analysis. You can utilize them as you’d utilize any other symbol on the platform, from creating static or multi-factor alerts on them to defining their conditions within your favorite strategies, even in your custom scripts! Let’s look at some examples.

Market Breadth Alerts

Just like you’re used to creating alerts on individual symbols, it’s now possible to set alerts on market breadth symbols. Alerts can be set on static items, like trendlines, or they can be condition-based and multi-factored.

For example, in the below image, we’ve created a horizontal trendline alert on the $MA200N100 chart. The purpose of this alert is to let us know when the percentage of stocks above their 200-day moving average within the Nasdaq 100 drops below 50%.

This is an image of a trendline alert on a breadth symbol.

Want to know when the percentage of stocks in the S&P 100 making new 14-day highs has increased multiple days in a row? You can do that using the multifactor alert pictured below. It specifies that the percentage of stocks making new 14-day highs has increased three days in a row.

This is an image of multifactor alert conditions on a breadth symbol.

Strategy Integration

Conditions of your favorite market breadth symbols can also be defined within the strategy tester to give your strategies an additional edge. For example, perhaps you’d like to employ a bullish moving average cross strategy on XLE when at least 50% of Amex Oil Index (AO) constituents are above their 200-day moving averages.

To do that, simply create a new condition group and utilize the ‘on other symbol’ drop-down menu to define the conditions for $MA200AO.

This is an image of the conditions of a breadth symbol within a strategy.

Important Considerations

While TrendSpider’s Market Breadth Symbols offers unparalleled insights into market dynamics, users should be aware of certain limitations, including the bias towards current index constituents and the availability of end-of-day data only.

With Market Breadth Symbols, you are empowered with comprehensive insights into market trends and sector performance, enabling more informed decision-making and enhanced trading strategies. If you have any questions, please reference our Developer Documentation or contact our support team via the ‘Contact Us’ button in the bottom-right corner of your platform view.